Jason Pellegrino, the CEO of Domain, has announced his resignation after six years in the role. Pellegrino, who joined Domain in August 2018 following a decade as managing director of Google Australia, took over the company shortly after Fairfax Media took it public and following the abrupt exit of Antony Catalano, a former journalist turned real estate entrepreneur.
During his tenure, Pellegrino led Domain through significant challenges, including navigating 13 interest rate hikes and the COVID-19 pandemic. Under his leadership, Domain transitioned from a media-driven classifieds business into a technology-focused property marketplace. “He leaves Domain in a strong financial, operational and cultural position, underpinned by robust digital infrastructure that enables us to be highly competitive across the entire property ecosystem,” said Domain chairman Nick Falloon.
Despite these achievements, Pellegrino’s departure comes as the gap between Domain and its primary competitor, REA Group, has widened. REA, which owns realestate.com.au and is controlled by News Corp, has seen its market value more than double over the past five years. In contrast, Domain’s value has fallen by 4.7 per cent. REA has surged by 23 per cent since January 2024, reaching a market capitalisation of $30 billion, while Domain’s valuation has dropped 9.6 per cent to $2 billion. This is despite Domain investing $264 million in acquisitions over the past three years.
Pellegrino stated that Domain remains in a solid financial position and that the “robust” property market made this an ideal time for the company to find a new leader. He will remain in his role for several months while the board searches for his successor.
As Nine Entertainment, Domain’s largest shareholder with a 60 per cent stake, assesses its future with the platform, there have been discussions with private equity firms, including KKR and TPG, though no deals have been made. Nine’s stake in Domain is valued at $1.2 billion, which is more than half of Nine’s own $2 billion valuation.
Earlier this week, JPMorgan analysts noted the growing disparity between REA and Domain. While Domain’s property listings improved in the second half of 2024, rising by 8 per cent, REA’s listings increased by 10 per cent. Analyst Don Carducci observed that Domain’s performance in July likely included free or discounted listings.
Pellegrino’s exit marks another leadership shift at Nine which has seen significant changes in recent months. Former federal treasurer Peter Costello stepped down as chairman of Nine earlier this year, followed by CEO Mike Sneesby’s resignation last month. Matt Stanton, Nine’s chief financial and strategy officer, has since joined Domain’s board and is now acting CEO of Nine. Nine directors, including Mickie Rosen, joined Domain’s board last month.
Domain reported $391 million in revenue and $49 million in profit for the 2024 financial year.
Last week, the media giant released the results of an independent review of its workplace practices and culture. The Review of the Broadcast Division revealed a workplace culture plagued by abuses of power, harassment, and inequity, with 62 per cent of employees reporting instances of authority misuse. The qualitative data gathered highlights a lack of accountability and merit-based decisions, with personal preferences often dictating outcomes. High performers bear the brunt of the workload, while poor performers face no consequences, leading to dissatisfaction and unfair treatment. Additionally, 57 per cent of employees reported bullying and harassment, including public humiliation and intimidation, driven by power imbalances, gender inequality, and a lack of leadership accountability. Although sexual harassment rates were below industry averages, 30 per cent of employees still reported incidents, often exacerbated by social events involving alcohol.
Despite these findings, positive aspects of the workplace were noted, including strong peer support and improvements in leadership over the past two years. The Nine Board has committed to addressing these issues by implementing all 22 recommendations from the Intersection report, which was released in full to both employees and the public. The Board, led by Chair Catherine West, issued an apology to those harmed by the toxic culture and pledged a comprehensive action plan by November 2024 to reset Nine’s culture.
